But the Opposition says the policy is vague and lacks detail.

Planning Minister Andrew Barr said the Government would rezone an area in the rapidly growing part of Canberra to create an entertainment precinct similar to the one in Kingston.

Mr Barr said the plans followed the release of the Gungahlin Town Centre Planning Study last month.

He said there would be strong interest from the business community in providing facilities such as cinemas in the area.

''There's huge commercial interest: this is one of the fastest-growing areas in Australia. Whichever cinema chain gets in and wins the bid for the site will do very well,'' Mr Barr said.

Opposition Leader Zed Seselja said the policy lacked detail and the Government needed to show how it was going to attract the right mix of businesses.

''They're pretending to deliver something, but they've not shown how they are going to do that,'' Mr Seselja said.

Mr Barr said rezoning the area for retail uses would mean there was no competition for the land from large-scale commercial developers. ''They won't be competing with big developers coming in to put in office accommodation which is a higher return for a commercial site,'' Mr Barr said.

He said the entertainment zone, expected to be built within four years, would provide a town centre like others in Canberra.

Mr Barr said the Government did not have full details on how much revenue was expected from the land sales for the entertainment area through the rezoning and release of the land.

Coupled with the announcement was a further commitment to build an enclosed multi-purpose sports oval.

The $6 million centre would provide a home for Gungahlin-based sporting teams ranging from cricket and football to soccer and rugby.

The enclosed sports oval was expected to be up and running for the 2010-11 cricket season.